Nature of Disclosure: Investor presentation filed with stock exchanges under SEBI LODR Regulations, 2015, detailing the conclusion of the company's two-phase Engineering Services Divestment Programme and strategic transformation plan.

Divestment Programme Details:

  • Combined programme value: ~$237 million (~₹2,256 crore)
  • Minimum guaranteed: ~$177 million (~₹1,685 crore)
  • Contingent payments: ~$60 million (~₹571 crore)
  • Programme executed across FY27-FY29 window
  • Phase 2 transaction approved by Board on June 12, 2026

Phase 2 Transaction Structure:

  • Tranche 1 & Tranche 2: ~$206 million (~₹1,964 crore)
  • Minimum: ~$154 million (₹1,463 crore)
  • Contingent: ~$53 million (₹501 crore)
  • Scheduled payments: Q3 FY27 and FY29
  • Retained interest: 49% ownership until Tranche 2 closing
  • Accounting treatment: Divested business and retained 49% economic interest accounted under Indian Accounting Standards (Ind AS)
  • Higher transaction-related costs (deal advisory, legal, tax, separation) to be recognized in FY27

Strategic Transformation:

AXISCADES transitions from engineering services to a manufacturing, defence, space, electronics, semiconductors and AI platform with four strategic growth platforms:

1. Defence Solutions: Defence manufacturing, strategic electronics and system integration with ₹600 crore investment (₹300 crore at DAC + ₹300 crore at MAC facilities)

2. Aerospace Manufacturing, SCM & MRO: DAC, MAC, DAL facilities with ₹600 crore investment (₹150 crore at DAC + ₹450 crore in 2 acquisitions)

3. XiDA Inc: AI-centric Electronics and Semiconductor platform with ₹300 crore investment (₹90 crore facilities + ₹210 crore in 2 acquisitions)

4. Space Division: New satellite bus manufacturing and system integration with ₹300 crore investment (₹120 crore facilities & training + ₹180 crore in 2 joint ventures)

Use of Proceeds:

  • Total inflow: ~₹2,256 crore less ~₹333 crore tax provision = ~₹1,923 crore
  • Total outflow: ~₹2,256 crore (including ~₹333 crore internal accruals)
  • Platform investments: ₹2,100 crore
  • Balance sheet strengthening: ~₹156 crore

Growth Targets (Power 930 Plan):

  • Revenue target: ₹9,000 crore by FY2030
  • PAT target: ₹960 crore by FY2030
  • FY27 outlook: ~80% revenue from Defence and ESAI organic conversion, ~20% from 3 planned acquisitions

M&A Pipeline:

  • India: 1 domestic aerospace target for integration into Aerospace Manufacturing platform
  • United States: 2 ESAI targets for mirroring through XiDA Inc subsidiary
  • Europe: 1 aerospace target for integration into Aerospace Manufacturing platform

FY27 Revenue Transition:

  • Aerospace Engineering Services revenue will be reclassified as Discontinued Operations under Ind AS
  • Company plans to compensate through accelerated conversion of Defence pipeline (design wins, L1 programmes, new qualifications)
  • Defence programmes offer structurally higher margins and longer lifecycles
  • Quantified update on FY27 revenue transition and revised guidance promised at Q1 FY27 Investor Presentation

Historical Context:

  • AXISCADES 1.0 (2007-2015): Founded by Dr. S. Ravi Narayanan, built aerospace engineering services with customers including Airbus, Thales, MBDA, Boeing
  • AXISCADES 2.0 (2016-2024): Transition years with COVID-19 impact, limited strategic acceleration
  • AXISCADES 3.0 (2025-FY2030): Dr. SRN returns as Founder, Chairman & MD, driving manufacturing-focused transformation

Manufacturing Foundation:

Aerospace manufacturing technologies are dual-use and tri-use across Aero, Defence and Space, creating a globally scalable platform with operating leverage.

Contacts:

  • Investor Relations: Mr. Mukund Santhanam (Chief Growth Officer & Head, Investor Relations), Mr. Akash Pandey (Manager, Investor Relations)
  • IR Advisor: Ms. Shankhini Saha

Exchange Rate: USD/INR: 95.2 considered for conversions, with actual rate applicable at closing date